Critical review of the role of accounting in the decision-making process
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 14 June 2022
Issue publication date: 6 February 2024
Abstract
Purpose
This study aims to investigate the accounting role’s deficiencies in managers’ decision-making processes.
Design/methodology/approach
The current research applies a critical review method, which along with a deductive approach – based on a library review of existing sources – examines the underlying causes for the deficiencies of accounting role in the decision-making process of managers; moreover, based on the results obtained, the current study proposes a structural model to explain the issue.
Findings
The results exhibit the inadequacies of the accounting role in the decision-making process of managers into three sections: “dilution of financial reporting information content,” “malpractice of accounting information providers” and “managers’ unwillingness to use accounting information.”
Practical implications
This research provides a new perspective on critical accounting studies for the accounting profession, policymakers and managers and invites them to examine the roles of accounting information in more depth and breadth.
Originality/value
This article is the first study that critically expounds upon the literature on the deficiencies of accounting role in the decision-making process of managers and presents these deficiencies in the form of a structural model from three different perspectives.
Keywords
Citation
Salehi, A.K. (2024), "Critical review of the role of accounting in the decision-making process", Journal of Islamic Accounting and Business Research, Vol. 15 No. 2, pp. 244-264. https://doi.org/10.1108/JIABR-12-2021-0310
Publisher
:Emerald Publishing Limited
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